Lakeland Financial Earnings 2020-09-30

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2020

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to _____________

Commission File Number: 0-11487

LAKELAND FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

Indiana		35-1559596
(State or Other Jurisdiction		(IRS Employer
of Incorporation or Organization)		Identification No.)

202 East Center Street, Warsaw, Indiana		46580
(Address of principal executive offices)		(Zip Code)

(574) 267‑6144

(Registrant’s Telephone Number, Including Area Code)

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, No par value	LKFN	The Nasdaq Stock Market LLC
		(Nasdaq Global Select Market)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧ No ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ⌧ No ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of ‘‘large accelerated filer,’’ ‘‘accelerated filer,’’ ‘‘smaller reporting company,’’ and ‘‘emerging growth company’’ in Rule 12b–2 of the Exchange Act.

Large accelerated filer ⌧ Accelerated filer ◻ Non-accelerated filer◻

Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Number of shares of common stock outstanding at October 27, 2020: 25,713,408

Table of Contents

TABLE OF CONTENTS


		Page
PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements
	Consolidated Balance Sheets — September 30, 2020 and December 31, 2019	1
	Consolidated Statements of Income — three months and nine months ended September 30, 2020 and 2019	2
	Consolidated Statements of Comprehensive Income — three months and nine months ended September 30, 2020 and 2019	3
	Consolidated Statements of Changes in Stockholders’ Equity — three months and nine months ended September 30, 2020 and 2019	4
	Consolidated Statements of Cash Flows — nine months ended September 30, 2020 and 2019	6
	Notes to the Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	37
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	60
Item 4.	Controls and Procedures	60

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	61
Item 1A.	Risk Factors	61
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	63
Item 3.	Defaults Upon Senior Securities	63
Item 4.	Mine Safety Disclosures	63
Item 5.	Other Information	63
Item 6.	Exhibits	64

SIGNATURES		65

Table of Contents

ITEM 1. FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEETS (in thousands, except share data)


	September 30,		December 31,
	2020		2019
	(Unaudited)
ASSETS
Cash and due from banks	$	69,106	$	68,605
Short-term investments		59,975		30,776
Total cash and cash equivalents		129,081		99,381

Securities available-for-sale (carried at fair value)		644,034		608,233
Real estate mortgage loans held-for-sale		10,097		4,527

Loans, net of allowance for loan losses of $60,747 and $50,652		4,529,177		4,015,176

Land, premises and equipment, net		60,309		60,365
Bank owned life insurance		84,919		83,848
Federal Reserve and Federal Home Loan Bank stock		13,772		13,772
Accrued interest receivable		18,447		15,391
Goodwill		4,970		4,970
Other assets		56,302		41,082
Total assets	$	5,551,108	$	4,946,745


LIABILITIES
Noninterest bearing deposits	$	1,420,853	$	983,307
Interest bearing deposits		3,347,101		3,150,512
Total deposits		4,767,954		4,133,819

Borrowings
Federal Home Loan Bank advances		75,000		170,000
Miscellaneous borrowings		10,500		0
Total borrowings		85,500		170,000

Accrued interest payable		6,303		11,604
Other liabilities		54,512		33,222
Total liabilities		4,914,269		4,348,645

STOCKHOLDERS’ EQUITY
Common stock: 90,000,000 shares authorized, no par value 25,708,915 shares issued and 25,236,371 outstanding as of September 30, 2020 25,623,016 shares issued and 25,444,275 outstanding as of December 31, 2019		114,011		114,858
Retained earnings		512,041		475,247
Accumulated other comprehensive income		25,224		12,059
Treasury stock at cost (472,544 shares as of September 30, 2020, 178,741 shares as of December 31, 2019)		(14,526)		(4,153)
Total stockholders’ equity		636,750		598,011
Noncontrolling interest		89		89
Total equity		636,839		598,100
Total liabilities and equity	$	5,551,108	$	4,946,745

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

CONSOLIDATED STATEMENTS OF INCOME (unaudited - in thousands, except share and per share data)


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
NET INTEREST INCOME
Interest and fees on loans
Taxable	$	42,056	$	50,139	$	130,759	$	149,094
Tax exempt		104		234		542		720
Interest and dividends on securities
Taxable		1,577		2,209		5,419		6,956
Tax exempt		2,198		1,819		6,237		5,171
Other interest income		44		368		292		957
Total interest income		45,979		54,769		143,249		162,898

Interest on deposits		5,941		14,692		24,324		44,131
Interest on borrowings
Short-term		51		113		458		1,295
Long-term		74		419		172		1,307
Total interest expense		6,066		15,224		24,954		46,733

NET INTEREST INCOME		39,913		39,545		118,295		116,165

Provision for loan losses		1,750		1,000		13,850		2,985

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		38,163		38,545		104,445		113,180

NONINTEREST INCOME
Wealth advisory fees		1,930		1,736		5,594		5,002
Investment brokerage fees		421		386		1,148		1,300
Service charges on deposit accounts		2,491		3,654		7,452		12,791
Loan and service fees

Price	44.42	EPS	3
Shares	26	P/E	13
MCap	1,146	P/FCF	16
Net Debt	-137	EBIT	167
TEV	1,009	TEV/EBIT	6
TTM 2019-09-30, in MM, except price, ratios

10-Q	2020-09-30	Filed 2020-10-28
10-Q	2020-06-30	Filed 2020-08-05
10-Q	2020-03-31	Filed 2020-04-30
10-K	2019-12-31	Filed 2020-02-24
10-Q	2019-09-30	Filed 2019-11-01
10-Q	2019-06-30	Filed 2019-08-09
10-Q	2019-03-31	Filed 2019-05-03
10-K	2018-12-31	Filed 2019-02-28
10-Q	2018-09-30	Filed 2018-11-05
10-Q	2018-06-30	Filed 2018-08-03
10-Q	2018-03-31	Filed 2018-05-07
10-K	2017-12-31	Filed 2018-03-01
10-Q	2017-09-30	Filed 2017-11-07
10-Q	2017-06-30	Filed 2017-08-07
10-Q	2017-03-31	Filed 2017-05-10
10-K	2016-12-31	Filed 2017-03-01
10-Q	2016-09-30	Filed 2016-11-09
10-Q	2016-06-30	Filed 2016-08-09
10-Q	2016-03-31	Filed 2016-05-10
10-K	2015-12-31	Filed 2016-03-03
10-Q	2015-09-30	Filed 2015-11-09
10-Q	2015-06-30	Filed 2015-08-10
10-Q	2015-03-31	Filed 2015-05-11
10-K	2014-12-31	Filed 2015-03-05
10-Q	2014-09-30	Filed 2014-11-10
10-Q	2014-06-30	Filed 2014-08-11
10-Q	2014-03-31	Filed 2014-05-12
10-K	2013-12-31	Filed 2014-03-03
10-Q	2013-09-30	Filed 2013-11-12
10-Q	2013-06-30	Filed 2013-08-09
10-Q	2013-03-31	Filed 2013-05-10
10-K	2012-12-31	Filed 2013-03-04
10-Q	2012-09-30	Filed 2012-11-07
10-Q	2012-06-30	Filed 2012-08-08
10-Q	2012-03-31	Filed 2012-05-10
10-K	2011-12-31	Filed 2012-03-05
10-Q	2011-09-30	Filed 2011-11-09
10-Q	2011-06-30	Filed 2011-08-09
10-Q	2011-03-31	Filed 2011-05-09
10-K	2010-12-31	Filed 2011-03-07
10-Q	2010-09-30	Filed 2010-11-04
10-Q	2010-06-30	Filed 2010-08-04
10-Q	2010-03-31	Filed 2010-05-05
10-K	2009-12-31	Filed 2010-03-08

8-K	2020-11-19
8-K	2020-10-26
8-K	2020-10-13
8-K	2020-07-27
8-K	2020-07-27
8-K	2020-07-14
8-K	2020-05-05
8-K	2020-04-27
8-K	2020-04-14
8-K	2020-04-14
8-K	2020-03-25
8-K	2020-03-10
8-K	2020-01-27
8-K	2020-01-14
8-K	2019-11-14
8-K	2019-11-04
8-K	2019-10-25
8-K	2019-10-08
8-K	2019-07-25
8-K	2019-07-09
8-K	2019-04-25
8-K	2019-04-09
8-K	2019-04-09
8-K	2019-03-20
8-K	2019-03-14
8-K	2019-01-25
8-K	2019-01-08
8-K	2018-11-27
8-K	2018-10-25
8-K	2018-10-11
8-K	2018-10-09
8-K	2018-07-25
8-K	2018-07-10
8-K	2018-04-25
8-K	2018-04-10
8-K	2018-04-10
8-K	2018-01-25
8-K	2018-01-11
8-K	2018-01-09

EX-31.1	lkfn-20200930xex31d1.htm
EX-31.2	lkfn-20200930xex31d2.htm
EX-32.1	lkfn-20200930xex32d1.htm
EX-32.2	lkfn-20200930xex32d2.htm

LKFN 10Q Quarterly Report

Lakeland Financial Earnings 2020-09-30